Toolkit Home | Legacy Businesses | Community Importance
The increased importance of legacy businesses in BIPOC, ethnic, and immigrant communities.
The terms Black, Indigenous, and People of Color (BIPOC), ethnic, and immigrant refer to three types of communities that can share identity, cultural heritage, and social interactions rooted in shared ancestry or history. BIPOC is an umbrella term that includes distinct cultural, historical, and social identities, but emphasizes and acknowledges a shared experience of inequality, marginalization, bias, and racism. Ethnic communities are those tied to a cultural heritage, regardless of how long a person has lived in the US or where they came from. These communities maintain shared traditions, cultural identity, and, at times, language or religion across generations. Immigrant communities are those based on a shared history of migration to the US, often sharing national origins, languages, settlement patterns, as well as identity and culture.
These communities are crucial components of the American mosaic because of their contributions to local and national culture, economic diversity, and diversity. Nationally, these communities have helped shape this country’s history and identity and have enriched the arts, cuisine,and traditions of the country. Locally, these communities create neighborhoods with a defined character and sense of place that create community pride and attract visitors. Despite these contributions, BIPOC, ethnic, and immigrant communities often share inequitable inclusion and participation in local economies or municipal services.
Legacy businesses in BIPOC, ethnic and immigrant communities are significant because they are centers for the living heritage in their neighborhoods. They serve as centers for the local language, culture, traditions, music, art, and cuisine of their respective communities. They are key hubs for the local economy, keeping money within the community and providing employment opportunities that may not be available elsewhere. These businesses are crucial components that help to define BIPOC and ethnic communities. Sustaining and preserving them protects not just the physical space but the culture, community identity, and economic stability of the neighborhood.
Photo by Cindy Kane Photography
Photo by Cindy Kane Photography
It really started as a men's club because black people in Arlington at that time couldn't get together. We couldn't go to theaters here in Arlington; we had to create our own spaces. The church was a part of that and places like this were a part of that as well. That continues to this day.
That's really what this shop is all about; it's about community...and so even though there were individual families and individual houses with individual stories, we all had a place that we could get together and, as a community, share one another's, you know, successes and failures...and help each other as we grew as a community
[Speaking on the importance of Mr. Moore's Barbershop in the historically Black community of Hall's Hill in Arlington, VA]
Jim Moore
Second-generation owner of the legacy business, Mr. Moore’s Barbershop in Arlington, VA.
Big Idea.
Ethnic Enclaves
Ethnic enclaves are neighborhoods and commercial districts where residents with shared culture, national origin, language, and sometimes religion live and build community. Many of these neighborhoods form as immigrants settle near family, social connections, businesses, and cultural or religious institutions that provide a familiar setting or support network. These neighborhoods help newly arrived residents adjust to their new surroundings and often offer job opportunities that may not be available elsewhere. For longtime residents, these neighborhoods foster a sense of place attachment and provide ongoing social and cultural connections.
Providing context.
A 2021 study on the impact of the COVID-19 pandemic on businesses in historically Black neighborhoods of Washington, DC, and Baltimore, MD, found that local, longtime businesses significantly contributed to the culture of those communities in several ways:
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BIPOC legacy businesses offer communities authenticity in a changing world, providing a continuous sense of place and serving as a testament to the community's history for generations to come. BIPOC and ethnic business owners who represent their communities and showcase cultural diversity often make local residents feel seen and grounded.
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The goods and services provided by legacy or locally-owned small businesses in these communities are often tailored to the beliefs, tastes, and practices of their communities, contributing to the local culture. Additionally, a 2023 report from the California Office of the Small Business Advocate, The State of Diverse Small Businesses in California, found that the proximity of minority-owned small businesses to their communities allowed them to quickly adapt and respond to specific community needs often not served elsewhere.
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Music and art are frequently highly localized in these communities, and local businesses tend to support these local tastes. The 2021 study in DC and Baltimore found that, after jazz and go-go clubs were lost in Black neighborhoods during the COVID-19 pandemic, the community felt like part of their culture was gone and would not return.
Legacy businesses in BIPOC and ethnic communities are not only centers for cultural heritage; they are also vital to the local economies. They play a disproportionately larger role in their local economies compared to other neighborhoods.
In the paper "Ghettos and Barrios: The Impact of Neighborhood Poverty and Race on Job Matching among Blacks and Latinos," featured in the July 2001 edition of Social Problems, researchers James Elliott and Mario Simms found that in BIPOC communities—especially Hispanic communities—small businesses tend to hire local employees more frequently than in other communities, contributing to overall community pride and a place attachment. They also found that Hispanics and Latinos are much more likely than other major ethnic groups to acquire jobs through friends, family, or personal networks.
Additionally, in its 2023 Report, “The State of Diverse Small Businesses in California,” the California Office of the Small Business Advocate found that minority-owned small businesses play a vital role in community building by circulating local revenue and actively engaging with their communities.